Sprint is the belle of the ball at the moment with both SoftBank and Dish Network courting it for an acquisition. It appears, however, that one of them is taking a decisive lead.
SoftBank, the Japanese cellular carrier, was the first to make a bid for Sprint, looking to acquire 70 percent for $20 billion dollars. As the deal progressed, Dish Network stepped in saying that it also wanted to make a bid, and SoftBank agreed to allow Sprint to explore the option.
Bloombergs is now reporting that Dish Network and Sprint have hit several roadblocks, and the satellite company only has until June 18 to come up with a new bid before Sprint goes back into talks with SoftBank. Apparently Dish failed to propose an actionable bid, and it also would not agree to Sprint’s request for a $3 billion dollar reverse break-up fee should regulators not approve the deal. Dish did say it was willing to pay $1 billion, but the two companies failed to reach a compromise.
Meanwhile, SoftBank has reportedly sweetened its offer $21.6 billion for a 78 percent stake in the company, $16.64 billion of which would be in cash. The SoftBank acquisition has already been approved by the U.S. Justice Department, so should Sprint go back into talks with them, this could be a very quick turnaround.
Dish Network still has six days to sort this out, but it’s looking fairly likely that SoftBank will indeed acquire Sprint.